April 6, 2021 — Regular Meeting
Conroe ISD Board Meeting — 2021-04-06
Regular Meeting — Unofficial Notes
Based on auto-generated transcript. Not an official record.
Generated 2026-03-28 13:42 UTC
Unofficial Meeting Notes
Conroe ISD Board Workshop
April 6, 2021
These are unofficial notes based on an auto-generated transcript and may contain errors or omissions.
Housekeeping
- Next workshop scheduled for May 3 (Monday) — moved from the usual Tuesday due to Teacher Appreciation Day/Salute to Education on May 4.
- Possible specially called board meeting may be gaveled in on May 3 as well.
- No public comments were received; no one signed up to address the board.
Item 2: TASB Pay Plans Presentation
Presenters: Jennifer Barton and Amy Campbell (TASB HR Services), joining remotely. Board member Mr. Moore participated in the internal pre-meeting this year (Mr. Sanders in prior years).
Market Overview & Process
- TASB conducts annual salary studies comparing Conroe ISD to Houston-area peer districts.
- Market group includes districts in the Houston area; nearly 100% participation in the survey.
- For directors and above, statewide data from districts with 50,000+ enrollment is used.
- Third-party data sources (ERI, CompAnalyst) used for non-school market comparisons.
Teacher Pay Findings
- Starting salary: $57,000 vs. market median of $56,000 (102% of market).
- Competitive at all benchmark years (0, 5, 10, 15, 20 years experience); at or above market at every level.
- Stipends offered: General Master's ($1,800 vs. median $1,000); Special Ed self-contained ($2,000 at median); Bilingual ($4,500 vs. median $4,200).
- No secondary math/science stipend currently offered; 6 of 11 peer districts do offer one. TASB recommends monitoring recruitment/retention and adding if needed.
Exempt (Administrative/Professional) Pay
- Administrative Business: 98% employee pay to market, 101% midpoint to market.
- Administrative Education: 100% employee pay, 101% midpoint.
- Select teacher schedule positions: 97% to market.
- All groups competitive within the 90–110% range.
Non-Exempt (Hourly) Pay
- Administrative Support: 101% to market.
- Instructional Support: 105% employee pay, 107% midpoint.
- Auxiliary: 103% employee pay, 105% midpoint.
- Police Department: 102% to market (focus area from prior year; now above market).
- All groups strong and competitive.
TASB Recommendations
1. Adopt the proposed pay plan with adjustments.
2. 3% general pay increase across the board for all groups (teachers, exempt, non-exempt).
3. Additional teacher schedule adjustments at years 7, 10, and 12–19 for market competitiveness.
4. Minimum starting rate of $12/hour for all non-exempt employees (up from ~$10.85 previously); some groups at $12.50.
5. Additional adjustments for employees below pay range minimums and for internal equity.
6. Placement scales applied for various groups (12 years to midpoint for some, 10 years for others).
7. Educator Career Pathway: ensure pay is 2% above daily teacher rate for same experience.
8. Proposed starting teacher salary: $58,500 (up from $57,000).
9. Cost model: 3% across the board = $12.191 million.
Board Discussion on Pay
- Mr. Sanders emphasized the importance of looking at non-school market data (private sector) to avoid mid-year corrections like the custodian pay adjustment earlier in the year. Custodian starting rate for next year: $12.79/hour.
- Mr. Sanders asked about bus drivers — TASB confirmed bus driver pay is 1% above market; Conroe offers more duty days and guaranteed hours than most peers. Starting rate is even with market.
- Mr. Sanders asked about police officer career designations (master police officer, etc.) — confirmed these have been incorporated into the pay file with different hourly amounts. Officer starting rates nearly $24/hour.
- Mr. Moore confirmed no secondary math/science stipends are included in the $330,000 teacher adjustment figure. District has not seen a recruitment need to add these.
- Mr. Williams (Datren) asked about the basis for the flat 3%. Explanation: TASB presented 1%, 2%, and 3% options; district leadership felt 3% was appropriate given market conditions and desire not to "short change" employees. Mr. Moore noted the 3% accounts for ~2% market fluctuation plus inflation and healthcare cost increases, so employees would realize an actual net raise.
- Amy Campbell (TASB) noted Conroe has moved from below market to above market over five years; 3% helps maintain that position.
- Dr. Null noted a retention stipend (one-time payment) will also be built into the budget, separate from the 3% raise. Historically $500–$675; this year could be approximately $750. The stipend is a flat amount (not percentage-based), which proportionally benefits lower-paid employees more.
- Ms. Chase asked about the $15/hour minimum wage discussion. TASB responded that $15/hour is not expected to be enacted federally or at the state level in the next 2–3 years; the move to $12 is aggressive and competitive. Some Texas legislative bills would raise minimum wage for specific positions (bus drivers, custodians) but haven't advanced yet. Going to $15 today would cost approximately $5.7 million.
No formal vote taken — workshop/informational item.
Item 3: 2021–2022 Preliminary Budget Presentation
Presenter: Darren Rice, Chief Financial Officer; Mrs. Garza
Legislative Update
- Both House and Senate budgets fully fund HB 3 (state funding formula).
- HB 1525 (cleanup bill): Changes fast-growth allotment calculation. Conroe would drop from ~$15 million to ~$7.5 million. Being watched closely. Voted out of committee.
- HB 3445 (fund balance bill): Would limit unassigned fund balance to 110 days of operating expenses (currently Conroe is at ~153 days). Minimum remains 90 days. Penalties for exceeding 110 days are unknown. Voted out of committee.
- Unknowns: Virtual school funding mechanism; enrollment projections; COVID-19 impact on next school year.
ESSER/Federal Relief Funding
- ESSER I (CARES Act): District received $6.5 million, but state reduced ADA to make it net zero.
- ESSER II: Estimated ~$27.9 million allocation.
- ESSER III (ARP): Estimated ~$62.4 million allocation. State expected to recapture some, but amount is very large.
- District taking a conservative approach — not spending ESSER money on recurring costs like pay raises. Dr. Null cautioned that other districts may announce large raises funded by temporary ESSER money, but Conroe prefers sustainability.
- Some ESSER funds may be used by the state to shore up TRS Active Care and TRS retirement plans.
Tax Rate
- Current rate: $1.2125
- Projected 2021–22 rate: ~$1.19 (approximately 2-cent decrease)
- Over three years, approximately 9-cent cumulative tax rate decrease — described as very significant for taxpayers.
- HB 3 limits tax revenue growth to 2.5%; excess reduces the tax rate.
- Bond promise kept: tax rate now 4 cents lower than when the 2019 bond was approved.
Fund Balance
- Unassigned fund balance: $153.7 million (~153 days of operating expenses)
- Target range: 20–25% of budget
- At 20% target: $38.3 million available above target
- District anticipates large fund balance increase this year from $20 million in CARES Act county funding.
- Recommendation to transfer $10 million from fund balance to capital maintenance fund to complete the $50 million commitment (currently at $30 million budgeted + $10 million this year = $40 million; $10 million from fund balance completes $50 million). May bring this recommendation at the April board meeting.
Enrollment
- 2019–20 ended at 64,799 students
- 2020–21 budgeted for 66,298; opened at 64,565 due to COVID
- Current enrollment (as of April 5): 65,374 — largest in district history
- Growth of 809 students during the year
- 2021–22 budget assumes 66,298 enrollment; could reach 67,000
- Kindergarten/Pre-K roundup: 886 students enrolled in two days — a record
- ~11,000 students (~16%) still remote; surveys suggest ~75% of remote students will return in person; ~3,000 may seek virtual school or other options
- Virtual school: ~15 teachers budgeted; estimated 900+ students (110–140 per grade for grades 3–9)
Revenue Estimates
- Local revenue increase: $10.1 million (limited by 2.5% cap)
- State funding decrease (Robin Hood offset): ($10.1 million) — net zero from property value growth
- New Instructional Facilities Allotment decrease: ($1.85 million) — Hope Elementary coming online but smaller bump than Stockton JH last year
- Interest revenue decrease: ($1.6 million)
- TRS in-kind accounting entry: $2.5 million
- Total estimated revenue decrease: ($950,000)
- Estimated total revenue: $581.5 million
Expenditure Estimates
| Item | Amount |
|------|--------|
| General pay increase (3%) | $12.191 million |
| Additional personnel (Hope Elementary + support) | $3.3 million |
| Retention stipend | $6.0 million |
| Other expenses (utilities, insurance, supplies) | $520,000 |
| Capital maintenance fund transfer (offset from fund balance) | ($10.0 million) |
| TRS accounting entry | $2.5 million |
| Total expenditure increase | $14.51 million |
- Estimated total expenditures: $591.5 million
- District recommends using $10 million of COVID relief funding to balance the budget.
Personnel Additions (63.75 new positions, ~$3.3 million)
- Campus-level (Hope Elementary + support): 34.75 positions (21.75 teachers, 4 professionals, 7 paraprofessionals, 2 administrators) — $2 million
- Support staff: 29 positions (primarily custodial and bus drivers) — $1.2 million
Budget Timeline
| Date | Action |
|------|--------|
| June 1 | Board workshop — budget presentation |
| July 14 | District-level planning committee presentation |
| July 20 | Board meeting — budget discussion |
| August 3 | First public hearing |
| August 17 | Public hearing + board adoption of budget and tax rate |
No formal vote taken — workshop/informational item.
Item 4: 2021–2022 Health Plan Design and Premium Update
Presenters: Darren Rice; Nick Long and Maggie Parker (Gallagher Benefits, district's benefits consultant since November 2020)
Current Plan Overview
- 5,500+ employees; 9,500+ lives covered
- District contribution: $446 per employee per month
- Current year funding: ~$52 million
- Last year saw a 9% increase (5.4% handled through premium increases; 3.6% through plan design changes)
Plan Options
- Charter/Kelsey Plan: ~1,800 employees (Kelsey-only network)
- United Nexus Plans (Tier 1 & 2): ~3,200 employees (largest plan; Tier 1 = Memorial Hermann, Tier 2 = United Choice network)
- High Deductible Plan
- TRS Active Care Primary Plus used as benchmark comparison
Current Year Performance (through March)
- Total revenues: $31.3 million
- Total expenditures: $30.1 million
- Net positive: $1.2 million (tracking as expected)
Health Plan Fund Balance
- $6.8 million (after accounting for runoff liability) — very healthy
- Jump from prior year due to Aetna-to-United transition: actuary estimated $6 million runoff, actual was ~$2 million, returning ~$4 million to fund balance
- Target fund balance: ~$2.5 million minimum
Initial Renewal & Gallagher's Work
- Initial renewal estimate: ~14% increase (status quo, with conservative 5% COVID claims surge load)
- Step 1 — Pharmacy (PBM) savings: Joined a coalition to approach Optum (United subsidiary) collectively; reduced pharmacy costs by ~20% by squeezing spread pricing and increasing rebates. No impact to employees — ~5% overall plan savings.
- Step 2 — Plan design changes to improve equity across plans (Nexus plan running worst; others running better):
- HDHP deductible: $6,900 → $7,000
- Nexus Tier 1 deductible: $1,500 → $1,750
- Nexus Tier 2 deductible: $2,750 → $3,000
- Tier 2 copays changed to deductible + coinsurance
- Charter/Kelsey deductible: $1,200 → $1,500; coinsurance 90% → 85%
- These changes brought renewal down to ~3.8% (from 14%)
Additional Cost Reduction Efforts (in progress)
- Administrative fee negotiation: Conroe's admin fees are highest per member among Houston school districts; Gallagher has presented benchmark data to United.
- Stop-loss insurance bid: Going out to bid (pure commodity; no employee impact). Current renewal at 19.7%; Gallagher's underwriters believe it should be ~9%.
- Estimated additional savings from these two efforts: ~2% of the renewal.
- COVID surge load (5%): ~$2.6 million. Mr. Rice recommended using fund balance to cover this if needed at end of plan year rather than building it into premiums, since it's a one-time anticipated event.
Proposed Premium Increases (at 3.8%)
| Plan | EE Only | EE+Children | EE+Spouse | EE+Family |
|------|---------|-------------|-----------|-----------|
| Charter/Kelsey | +$16 | +$58 | +$76 | +$90 |
| United Nexus | +$16 | +$60 | +$80 | +$98 |
| HDHP | +$6 | +$44 | +$50 | +$70 |
- Additional required funding: $2.1 million; total plan funding needed: $55.48 million
- This is presented as worst-case scenario — further reductions expected from admin fee negotiations and stop-loss bidding.
- Board appeared generally supportive of using fund balance to offset the COVID surge load.
No formal vote taken — workshop/informational item. Formal recommendation expected at April board meeting after employee benefits committee review (meeting scheduled for the following Wednesday).
Item 5: Conroe ISD Clinic Report and Benefit Options
Presenters: Darren Rice; Nick Long (Gallagher)
Current Clinic Status
- One on-site wellness clinic at Oak Ridge Elementary, managed by Memorial Hermann for 5 years.
- Contract expiring end of May; Memorial Hermann has verbally agreed to extend through August to allow time for evaluation.
- Cost: In excess of $650,000/year (fixed costs plus variable/utilization charges)
- Average visits: ~327/month (breakeven is ~550 visits/month)
- 989 employees listed at the clinic as primary care, but many are defaults who never visit.
- Funded from employee health plan funds (not general fund/taxpayer money).
Key Concerns
- Geographic limitations — no single location works for the entire district's large footprint.
- Once breakeven is reached (~550 visits), an additional provider must be hired, raising the breakeven threshold again.
- Many employees have existing provider relationships.
- Telemedicine usage has increased significantly during COVID.
- Urgent care facilities are now widely available across the area (unlike when the clinic was originally established).
Gallagher's Alternative Recommendations
Redeploy the ~$650,000 clinic cost toward:
1. $0 telemedicine copay on all plans except HDHP (IRS-regulated) — significant cost savings potential by redirecting urgent care and ER visits.
2. Lower copays to $10 on the Nexus and Charter plans (matching clinic-level pricing but across a broader network).
3. Ready MD program — telemedicine-driven chronic disease monitoring program used by other school districts.
4. Preferred urgent care network — negotiate preferred rates with urgent care providers across the district's geographic area; would offer extended hours (nights, weekends), lower copays, and broader access than the single clinic location. Financial structure TBD (to be bid).
Board Discussion
- Mr. Sanders recalled being on the board when the clinic was created; acknowledged times have changed (telemedicine, urgent care availability). Strongly emphasized that any alternative must be affordable for lower-paid employees — noted that a $30–$40 copay is significant for employees making $500 every two weeks. Supported exploring alternatives.
- Mr. Williams questioned the viability analysis and noted the clinic benefits a smaller subset of employees while the cost is borne by the entire pool; acknowledged the tradeoff of redistributing funds.
- Board appeared generally receptive to exploring alternatives; no formal decision made.
- Staff will continue evaluating options and bring recommendations to the board later in the summer.
No formal vote taken — workshop/informational item.
Item 6: House Bill 3 Board-Adopted Goals and Plan Process
Presenters: Dr. Upshaw and Mr. Colschen
Overview
- HB 3 requires the board to adopt goals in two areas:
1. Early childhood literacy and math (third-grade STAAR performance)
2. College, career, and military readiness (CCMR)
- Goals will be set at the "Meets Grade Level" standard (not just "Approaches"/passing) — indicating solid understanding and readiness for next grade level.
- Goals will be presented for formal adoption at the April 20 board meeting.
- Goals cover a five-year horizon (through 2025) but will be monitored annually with a board monitoring calendar; can be adjusted based on changing circumstances.
- Subpopulations with fewer than 25 students are marked N/A (consistent with state accountability rules).
Goal 1: Early Childhood Literacy
- Target: Increase percentage of 3rd graders scoring "Meets Grade Level" on STAAR Reading from 54% to [TBD] by August 2025.
- Conroe outperforms the state in some subgroups; needs growth in others.
- Progress measures:
- Kindergarten–2nd grade phonemic awareness/phonics effectiveness (using mCLASS program; first year of implementation; mid-year data)
- Kindergarten end-of-year reading levels (BAS assessment): Currently 72% at mid-year (all group)
- First grade reading levels
- Second grade reading levels
- Heggerty phonics program was purchased earlier in the year as part of HB 3's systematic phonemic awareness requirement.
- Pre-K data reporting still being solidified; expected to be included in future years.
Goal 2: Early Childhood Math
- Target: Increase percentage of 3rd graders scoring "Meets Grade Level" on STAAR Math from 60% to [TBD] by 2025.
- Piloted Rapid Math Assessment with 500 students across diverse demographics.
- Mid-year numeracy rates: Kindergarten 82%, First Grade 66%, Second Grade 72%.
Goal 3: College, Career, and Military Readiness (CCMR)
- Baseline: Class of 2019 at 75% CCMR rate (up from Class of 2018).
- Class of 2020 preliminary data: ~10% decrease due to pandemic impacts:
- Industry-based certifications (traditionally spring testing) took a major dip
- Reduced AP exam participation (students didn't feel prepared after virtual learning)
- SAT/ACT testing windows disrupted
- State eliminated CTE coherent sequence half-points
- Military readiness component effectively eliminated due to verification issues
- Progress measures:
1. Increase graduates meeting TSI/Accuplacer benchmarks from 56% to [TBD] by June 2025
2. Increase graduates earning industry-based certifications from 8% to [TBD] by June 2025
3. Increase economically disadvantaged students meeting CCMR from 60% to [TBD] by June 2025 (selected because it touches the most students across all subgroups)
- State goal: 60% CCMR by 2030; Conroe already at 75% (2019 baseline).
Board Discussion
- Mr. Moore asked about flexibility to modify goals if significant legislative changes occur (e.g., pending dyslexia bills that could shift students from 504 to special education). Dr. Upshaw confirmed goals will be monitored annually and can be adjusted.
- Mr. Sanders raised concerns about data timing — CCMR data is lagging (finalized ~1 year after graduation). Board discussed the challenge of setting forward-looking goals with backward-looking data.
- Mr. Williams asked about the subpopulation percentage methodology — confirmed percentages are of each demographic's own population, not the total population.
- Formal goal adoption with specific target numbers expected at the April 20 board meeting.
No formal vote taken — workshop/informational item.
Summary of Key Takeaways
| Topic | Status |
|-------|--------|
| 3% across-the-board pay raise | Presented; to be finalized in budget adoption |
| $58,500 starting teacher salary | Proposed |
| $12/hour minimum for all hourly employees | Recommended |
| Retention stipend (~$750) | To be built into budget; one-time payment |
| Tax rate decrease (~2 cents to ~$1.19) | Projected |
| Health plan renewal | Worst case 3.8%; likely to improve with further negotiations |
| On-site clinic | Alternatives being explored; decision deferred to summer |
| HB 3 board goals | To be formally adopted April 20 |
| Budget adoption | Targeted for August 17 |
| Capital maintenance fund | $10 million transfer from fund balance recommended (April board meeting) |
Next scheduled workshop: May 3, 2021 (Monday)